Why Silver Eagles are proving to be Such a Sound Investment

These are tough economic times. With inflation at an all-time high, and no real signs of a global economic recovery, finding sound financial investments can be exceptionally difficult. If there is one investment that can hedge against devaluation and inflation, and give guaranteed results, it is in precious metals, especially gold and silver.

So why are precious metals a hedge against inflation? The global economy is already under huge pressure thanks to massive government debts. This means that governments have to print more money, and the more money they print, the more devalued currencies become.

Unlike money which is essentially relative in value and extremely vulnerable to global currency fluctuations, hard money like precious metals are more secure in their demand. In recent times, there has been a huge surge in demand for silver, and this has pushed silver prices up even further. Experts believe that this trend is set to continue notwithstanding day to day fluctuations in silver prices.

In fact, looking over the longer term, silver seems to have gone up over 700% since 2000, making it an extraordinarily rewarding investment for those who have managed to ride the wave and benefit from this huge rise. Silver continues to be a sound investment option in a diverse portfolio for those who are prepared to hold on to it until it hits the top of the current rising trend.

American silver eagles are the official silver bullion coin of the USA. Silver eagles remain one of the, or rather the most popular forms of holding silver. These coins are 99.9% pure silver in content, and contain a guaranteed one troy ounce of pure silver. They have a face value of one US dollar.

This means that the legal value of the American Silver eagle coin is 1 US dollar. However, their real value is far higher than a single dollar, and is determined by the silver content in the coin, as well as the current spot price of silver.

Silver eagles have been in demand since they became available for the very first time in 1986. At this time, initial inventories are known to have sold out instantly due to huge public demand for these coins. Since then, many people invest in American silver eagles regularly, many purchasing coins annually. This continued demand for the silver eagles can well be reassuring to those considering investing today.

Silver has seen a steady rise in demand for a long time now, and experts see no reasons for this demand to wane anytime soon. Investing in precious metals like gold and silver as part of a diverse portfolio only makes sense from the long term perspective.

The demand for silver for industrial purposes continues to increase. A limited supply of silver, combined with a continued interest in it means that silver is set to rise even further than it has over the past years. This not only makes the American silver eagle a sound investment until now, but a good investment for the future, too.